Following the announcement of the slimmer, faster, lighter iPad 2, its older brother has seen a substantial £100 price drop.

Live on Apple’s UK store, there’s been a price-cut across the whole original iPad range, with the cheapest 16GB WiFi-only tablet now £329.

At the top-end, a 64GB 3G-WiFi iPad is now £579- but we’d expect if you’re aiming for the biggest iPad, it’s probably worth taking the plunge on a 32GB iPad 2 for only slightly more.

That super-cheap entry level iPad is now competing with some of the lower-spec Android tablets seen in 2010.

It’s also cheaper than the forthcoming Android 3.0 tablets, like the Motorola Xoom or PlayBook, both of which will see people willing to buy either tablet squeezed by both the cheaper iPad and new whizzy iPad 2.

It’s a super bargain, and a great introduction to the world of tablets, especially for people so far unwilling to pay over £350 for something not quite a phone, not quite a laptop.